This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide. Lawrence Berkeley National Laboratory Lawrence Berkeley National Laboratory Title: Quantitative Analysis of the Principal-Agent Problem in Commercial Buildings in the U.S.: Focus on Central Space Heating and Cooling Author: Blum, Helcio Publication Date: 07-26-2010 Publication Info: Lawrence Berkeley National Laboratory Permalink: http://escholarship.org/uc/item/6p1525mg Keywords: Energy efficiency, commercial buildings, principal-agent, market failures Local Identifier: LBNL Paper LBNL-3557E Abstract: We investigate the existence of the principal-agent (PA) problem in non-government, non-mall commercial buildings in the U.S. in 2003. The analysis concentrates on space heating and cooling energy consumed by centrally installed equipment in order to verify whether a market failure caused by the PA problem might have prevented the installation of energy-efficient devices in non- owner-occupied buildings (efficiency problem) and/or the efficient operation of space-conditioning equipment in these buildings (usage problem). Commercial Buildings Energy Consumption Survey (CBECS) 2003 data for single-owner, single-tenant and multi-tenant occupied buildings were used for conducting this evaluation. These are the building subsets with the appropriate conditions for assessing both the efficiency and the usage problems. Together, these three building types represent 51.9percent of the total floor space of all buildings with space heating and 59.4percent of the total end-use energy consumption of such buildings; similarly, for space cooling, they represent 52.7percent of floor space and 51.6percent of energy consumption. Our statistical analysis shows that there is a usage PA problem. In space heating it applies only to buildings with a small floor area (<_50,000 sq. ft.). We estimate that in 2003 it accounts for additional site energy consumption of 12.3 (+ 10.5 ) TBtu (primary energy consumption of 14.6 [+- 12.4] TBtu), corresponding to 24.0percent (+- 20.5percent) of space heating and 10.2percent (+- 8.7percent) of total site energy consumed in those buildings. In space cooling, however, the analysis shows that the PA market failure affects the complete set of studied buildings. We estimate that it accounts for a higher site energy consumption of 8.3 (+-4.0) TBtu (primary energy consumption of 25.5 [+- 12.2] TBtu), which corresponds to 26.5percent (+- 12.7percent) of space cooling and 2.7percent (+- 1.3percent) of total site energy consumed in those buildings. iii Quantitative Analysis of the Principal-Agent Problem in Commercial Buildings in the U.S.: Focus on Central Space Heating and Cooling Helcio Blum and Jayant Sathaye International Energy Studies Group Lawrence Berkeley National Laboratory Berkeley, CA Abstract We investigate the existence of the principal-agent (PA) problem in non-government, non-mall commercial...
View Full Document
This note was uploaded on 09/27/2011 for the course ECON 6000 taught by Professor Fayissa during the Spring '10 term at Middle Tennessee State University.
- Spring '10